Eldorado Resorts Reports Fourth Quarter Net Revenue of $671.8
Million, and Record Operating Income of $86.7 Million, Adjusted EBITDA
of $161.3 Million and Adjusted EBITDA after Master Lease Payments of
$139.4 Million

February 27, 2019 04:05 PM Eastern Standard Time

RENO, Nev.--(BUSINESS WIRE)--Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the
Company”) today reported record operating results for the fourth quarter
and full year ended December 31, 2018. As outlined in the tables below,
the Company generated 2018 fourth quarter Consolidated Adjusted EBITDA
of $161.3 million and Consolidated Adjusted EBITDA, after $21.9 million
of Master Lease payments, of $139.4 million.

Total Net Revenue

($ in thousands, except per share data)

Three Months Ended

December 31,

2018

2018 Pre-Acquisition

2018 Total

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

136,981

$

-

$

136,981

$

112,756

$

26,662

$

139,418

(1.7

)%

Midwest

95,774

-

95,774

97,587

-

97,587

(1.9

)%

South

119,570

-

119,570

109,305

17,741

127,046

(5.9

)%

East

200,697

-

200,697

110,113

85,180

195,293

2.8

%

Central

118,586

-

118,586

-

119,546

119,546

(0.8

)%

Corporate and Other

152

-

152

140

36

176

(13.6

)%

Total Net Revenue

$

671,760

$

-

$

671,760

$

429,901

$

249,165

$

679,066

(1.1

)%

Operating Income

($ in thousands, except per share data)

Three Months Ended

December 31,

2018

2018 Pre-Acquisition

2018 Total

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

20,650

$

-

$

20,650

$

15,518

$

2,020

$

17,538

17.7

%

Midwest

25,084

-

25,084

22,396

-

22,396

12.0

%

South

14,752

-

14,752

(28,530

)

609

(27,921

)

(152.8

)%

East

30,799

-

30,799

13,689

(1,725

)

11,964

157.4

%

Central

21,372

-

21,372

-

22,926

22,926

(6.8

)%

Corporate and Other

(25,931

)

-

(25,931

)

6,683

(5,503

)

1,180

(2297.5

)%

Total Operating Income

$

86,726

$

-

$

86,726

$

29,756

$

18,327

$

48,083

80.4

%

Adjusted EBITDA

($ in thousands, except per share data)

Three Months Ended

December 31,

2018

2018 Pre-Acquisition

2018 Total

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

34,572

$

-

$

34,572

$

23,756

$

5,117

$

28,873

19.7

%

Midwest

33,525

-

33,525

30,549

-

30,549

9.7

%

South

25,898

-

25,898

23,325

2,810

26,135

(0.9

)%

East

43,678

-

43,678

20,404

9,416

29,820

46.5

%

Central

33,649

-

33,649

-

28,817

28,817

16.8

%

Corporate and Other

(10,043

)

-

(10,043

)

(7,160

)

(4,878

)

(12,038

)

(16.6

)%

Total Adjusted EBITDA (4)

$

161,279

$

-

$

161,279

$

90,874

$

41,282

$

132,156

22.0

%

Net (Loss) Income

$

(120

)

$

88,938

Basic EPS

$

0.00

$

1.16

Diluted EPS

$

0.00

$

1.14

Total Net Revenue

($ in thousands, except per share data)

Twelve Months Ended

December 31,

2018

2018 Pre-Acquisition(1)

2018Total(2)

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

483,532

$

87,316

$

570,848

$

410,319

$

158,536

$

568,855

0.4

%

Midwest

397,008

-

397,008

268,878

142,237

411,115

(3.4

)%

South

461,181

51,711

512,892

338,259

211,742

550,001

(6.7

)%

East

571,272

287,936

859,208

462,836

387,840

850,676

1.0

%

Central

142,485

349,241

491,726

-

471,806

471,806

4.2

%

Corporate and Other

529

94

623

506

1,551

2,057

(69.7

)%

Total Net Revenue

$

2,056,007

$

776,298

$

2,832,305

$

1,480,798

$

1,373,712

$

2,854,510

(0.8

)%

Operating Income

($ in thousands, except per share data)

Twelve Months Ended

December 31,

2018

2018 Pre-Acquisition(1)

2018Total(2)

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

84,548

$

13,635

$

98,183

$

66,108

$

22,983

$

89,091

10.2

%

Midwest

105,809

-

105,809

62,071

34,819

96,890

9.2

%

South

64,851

355

65,206

3,680

32,809

36,489

78.7

%

East

97,963

46,261

144,224

68,101

79,135

147,236

(2.0

)%

Central

24,240

70,105

94,345

-

85,717

85,717

10.1

%

Corporate and Other

(67,308

)

(52,127

)

(119,435

)

(105,150

)

(28,503

)

(133,653

)

(10.6

)%

Total Operating Income

$

310,103

$

78,229

$

388,332

$

94,810

$

226,960

$

321,770

20.7

%

Adjusted EBITDA

($ in thousands, except per share data)

Twelve Months Ended

December 31,

2018

2018 Pre-Acquisition(1)

2018Total(2)

2017

2017 Pre-Acquisition(3)

2017Total(2)

Change

West

$

126,189

$

22,914

$

149,103

$

93,604

$

39,260

$

132,864

12.2

%

Midwest

139,242

-

139,242

83,471

46,856

130,327

6.8

%

South

112,532

6,451

118,983

70,278

47,335

117,613

1.2

%

East

131,337

70,864

202,201

99,001

88,557

187,558

7.8

%

Central

39,499

93,691

133,190

-

112,788

112,788

18.1

%

Corporate and Other

(31,869

)

(15,230

)

(47,099

)

(24,173

)

(23,453

)

(47,626

)

(1.1

)%

Total Adjusted EBITDA (4)

$

516,930

$

178,690

$

695,620

$

322,181

$

311,343

$

633,524

9.8

%

Net Income

$

95,235

$

73,380

Basic EPS

$

1.23

$

1.09

Diluted EPS

$

1.22

$

1.08

(1)

Figures are for Grand Victoria Casino (“GV”) for the period
beginning January 1, 2018 and ending August 6, 2018 and for
Tropicana Entertainment, Inc. (“TEI”) for the period beginning
January 1, 2018 and ending September 30, 2018. Such figures are
based on interim financial statements and have not been reviewed by
the Company’s auditors.

(2)

Total figures for 2018 include combined results of operations for
ERI, TEI and GV and total figures for 2017 include combined results
of operations for ERI, GV, TEI and Isle of Capri Casino (“Isle”) for
periods preceding the date that ERI acquired GV, TEI and Isle, as
applicable. Such presentation does not conform with GAAP or the
Securities and Exchange Commission rules for pro forma presentation;
however, we believe that the additional financial information will
be helpful to investors in comparing current results with results of
prior periods. This is non-GAAP data and should not be considered a
substitute for data prepared in accordance with GAAP, but should be
viewed in addition to the results of the operations reported by the
Company.

(3)

Figures are for GV and TEI for the three and twelve months ended
December 31, 2017 and for Isle for four months ended April 30, 2017.
In the case of Isle, such figures were prepared by the Company to
reflect Isle’s unaudited consolidated historical net revenues,
operating income and Adjusted EBITDA for periods corresponding to
ERI's fiscal quarterly calendar. Such figures are based on unaudited
internal financial statements and have not been reviewed by the
Company's auditors and do not conform to GAAP.

(4)

Adjusted EBITDA is not a GAAP measurement and is presented solely as
a supplemental disclosure because the Company believes it is a
widely used measure of operating performance in the gaming industry.
See “Reconciliation of GAAP Measures to Non-GAAP Measures” below for
a definition of Adjusted EBITDA and a quantitative reconciliation of
Adjusted EBITDA to operating income (loss), which the Company
believes is the most comparable financial measure calculated in
accordance with GAAP.

“Eldorado’s record fourth quarter results marked the conclusion of
another active and productive year for the Company. The fourth quarter
growth was broad based with Adjusted EBITDA rising at 24 of our 28
properties. Fourth quarter Adjusted EBITDA rose 22.0% to $161.3 million
on essentially flat revenues as our initiatives to improve operating
efficiencies and margins led to a 450 basis point year-over-year
improvement in our consolidated Adjusted EBITDA margin to 24.0%,” said
Tom Reeg, Chief Executive Officer of Eldorado.

“In addition to the record financial results we generated over the
course of 2018, we undertook a series of actions that we believe will
position Eldorado to further enhance shareholder value. First, we
continue to benefit from synergies realized from the 2017 Isle of Capri
transaction. Our experience in integrating and rationalizing cost
structures at acquired properties has resulted in strong and growing
contributions from the accretive Grand Victoria Casino and Tropicana
Entertainment transactions completed in the 2018 third and fourth
quarters, respectively.

“During the year we also established a joint venture with The Cordish
Companies to master plan, design and develop a new world-class,
mixed-use entertainment and hospitality destination utilizing the
significant real estate surrounding our Isle Casino Racing Pompano Park.
This joint venture is expected to bring new upscale retail, dining, and
entertainment to South Florida and allow us to develop Pompano’s
valuable real estate while sharing in the cost to transform the
non-casino portion of our South Florida property.

“We also positioned the Company to benefit from the expected expansion
of sports wagering and online poker and casino gaming through long term
agreements with William Hill and The Stars Group to access our licenses
for online sports wagering for real money online gaming and poker
operations and, in the case of William Hill, operate our retail
sportsbook. In connection with our agreements with William Hill and The
Stars Group, we received equity interests in William Hill US, William
Hill plc and The Stars Group, and we will also share in revenue
generated from betting and online gaming activities. Our partnerships
with Cordish, William Hill and The Stars Group are modeled, in part,
after our successful joint venture that developed and opened a hotel at
Scioto Downs in early 2017 and which has contributed to Scioto’s
positive operating results.

Pursuant to the Company’s previously-announced $150 million common stock
repurchase program, Eldorado repurchased 223,823 shares at an average
price of approximately $40.80 per share in the 2018 fourth quarter. The
Company has approximately $140.9 million remaining on its current stock
repurchase program.

At December 31, 2018, Eldorado had $230.8 million in cash and cash
equivalents, excluding restricted cash. Outstanding indebtedness at
December 31, 2018 totaled $3.3 billion, including approximately $245.0
million outstanding on the Company’s revolving credit facility.
Subsequent to the end of the quarter the Company paid down approximately
$150.0 million of its outstanding indebtedness. Capital expenditures in
the fourth quarter of 2018 and for the full year totaled $58.3 million
and $147.4 million, respectively.

Summary of 2018 Fourth Quarter Region Results

Presque Isle Downs and Casino and Lady Luck Nemacolin are presented as
assets held for sale as of December 31, 2018. The property results for
Presque Isle Downs and Casino and Lady Luck Nemacolin are included in
the results of operations in this press release. The sale of Presque
Isle Downs and Casino was completed on January 11, 2019 and the
divestiture of Lady Luck Nemacolin is expected to be completed in the
current quarter.

Net revenue for the West Region properties for the quarter ended
December 31, 2018 declined approximately 1.7% to $137.0 million compared
to $139.4 million in the prior-year period, and operating income rose to
$20.7 million from $17.5 million in the year-ago quarter. West Region
fourth quarter Adjusted EBITDA increased 19.7% to $34.6 million
reflecting an Adjusted EBITDA margin improvement of 450 basis points to
25.2%, compared to Adjusted EBITDA of $28.9 million on an Adjusted
EBITDA margin of 20.7% in the prior-year period. Adjusted EBITDA rose
year over year at six of the seven West Region properties.

Net revenue for the Midwest Region properties for the quarter ended
December 31, 2018 decreased approximately 1.9% to $95.8 million compared
to $97.6 million in the prior-year period, while operating income rose
to $25.1 million from $22.4 million in the year-ago quarter. Midwest
Region fourth quarter Adjusted EBITDA rose approximately 9.7% to $33.5
million as the Adjusted EBITDA margin for the segment rose 370 basis
points to 35.0%. Adjusted EBITDA was up at all six of the Midwest
properties year over year. Adjusted EBITDA for the Midwest Region in the
prior-year period was $30.5 million reflecting an Adjusted EBITDA margin
of 31.3%.

Net revenue for the South Region properties for the quarter ended
December 31, 2018 declined approximately 5.9% to $119.6 million compared
to $127.0 million in the prior-year period, while operating income
(loss) increased to $14.8 million from $(27.9) million in the year-ago
quarter. The operating loss for the South Region in the fourth quarter
of 2017 includes total impairment charges of $38.0 million, including
impairment charges of $13.2 million for Isle of Capri Lake Charles;
$24.5 million for Lady Luck Casino Vicksburg; and $0.3 million for Isle
of Capri Casino Lula. South Region fourth quarter Adjusted EBITDA
declined approximately 0.9% to $25.9 million primarily reflecting the
impact from a recently enacted smoking ban on the Belle of Baton Rouge
Casino & Hotel and the impact of roadway construction which hampered
visitation to the Isle of Capri Lake Charles property. The Adjusted
EBITDA margin for the segment rose 110 basis points to 21.7%.

Net revenue for the East Region properties for the quarter ended
December 31, 2018 increased approximately 2.8% to $200.7 million
compared to $195.3 million in the prior-year period, while operating
income grew to $30.8 million from $12.0 million in the year-ago quarter.
East Region fourth quarter Adjusted EBITDA rose 46.5% to $43.7 million
compared to Adjusted EBITDA of $29.8 million in the prior-year period as
the East Region’s Adjusted EBITDA margin improved 650 basis points to
21.8%.

Net revenue for the Central Region for the quarter ended December 31,
2018 decreased approximately 0.8% to $118.6 million compared to $119.5
million in the prior-year period, while operating income declined to
$21.4 million from $22.9 million in the year-ago quarter. Central Region
Adjusted EBITDA for the fourth quarter rose 16.8% to $33.6 million
compared to Adjusted EBITDA of $28.8 million in the prior-year period as
the Central Region’s Adjusted EBITDA margin improved 430 basis points to
28.4%. Adjusted EBITDA increased at all three Central Region properties.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined below), a non-GAAP financial measure, has been
presented as a supplemental disclosure because it is a widely used
measure of performance and basis for valuation of companies in our
industry and we believe that this non-GAAP supplemental information will
be helpful in understanding the Company’s ongoing operating results.
Management has historically used Adjusted EBITDA when evaluating
operating performance because we believe that the inclusion or exclusion
of certain recurring and non-recurring items is necessary to provide a
full understanding of our core operating results and as a means to
evaluate period-to-period results. Adjusted EBITDA represents operating
income (loss) before depreciation and amortization, stock-based
compensation, transaction expenses, severance expense, selling costs
associated with the disposition of properties, proceeds from the
terminated sales of Vicksburg and Lake Charles, preopening expenses,
business interruption insurance proceeds, real estate tax settlements,
other than temporary impairments on investments, impairment charges,
equity in income (loss) of unconsolidated affiliates, (gain) loss on the
sale or disposal of property and equipment, and other non-cash
regulatory gaming assessments. Adjusted EBITDA also excludes the expense
associated with our Master Lease with GLPI as the transaction was
accounted for as a financing obligation. Adjusted EBITDA is not a
measure of performance or liquidity calculated in accordance with
accounting principles generally accepted in the United States
(“US GAAP”), is unaudited and should not be considered an alternative
to, or more meaningful than, net income (loss) as an indicator of our
operating performance. Uses of cash flows that are not reflected in
Adjusted EBITDA include capital expenditures, interest payments, income
taxes, debt principal repayments, payments under our Master Lease and
certain regulatory gaming assessments, which can be significant. As a
result, Adjusted EBITDA should not be considered as a measure of our
liquidity. Other companies that provide EBITDA information may calculate
EBITDA differently than we do. The definition of Adjusted EBITDA may not
be the same as the definitions used in any of our debt agreements.

Fourth Quarter Conference Call

Eldorado will host a conference call at 4:30 p.m. ET today. Senior
management will discuss the financial results and host a question and
answer session. The dial in number for the audio conference call is
323/794-2094, conference ID 7761541 (domestic and international
callers). Participants can also access a live webcast of the call
through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/
and a replay of the webcast will be archived on the site for 90 days
following the live event.

About Eldorado Resorts, Inc.

Eldorado Resorts is a leading casino entertainment company that owns and
operates twenty-seven properties in thirteen states, including Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri,
Nevada, New Jersey, Ohio, Pennsylvania and West Virginia. In aggregate,
Eldorado’s properties feature approximately 30,000 slot machines and
VLTs and approximately 800 table games, and over 12,500 hotel rooms. For
more information, please visit www.eldoradoresorts.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.Forward-looking statements include statements regarding our
strategies, objectives and plans for future development or acquisitions
of properties or operations, as well as expectations, future operating
results and other information that is not historical information.When
used in this press release, the terms or phrases such as “anticipates,”
“believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,”
“estimates,” “could,” “should,” “would,” “will likely continue,” and
variations of such words or similar expressions are intended to identify
forward-looking statements.Although our expectations, beliefs
and projections are expressed in good faith and with what we believe is
a reasonable basis, there can be no assurance that these expectations,
beliefs and projections will be realized.There are a number of
risks and uncertainties that could cause our actual results to differ
materially from those expressed in the forward-looking statements which
are included elsewhere in this press release.Such risks,
uncertainties and other important factors include, but are not limited
to:Eldorado’s ability to promptly and effectively integrate theoperations of Tropicana and Grand Victoria and realize synergies
resulting from the combined operations; the possibility that sports
book, online and mobile betting and gaming are not approved in various
jurisdictions, or, to the extent that such gaming activities are
approved, the market for such gaming does not develop as anticipated;
our substantial indebtedness and obligations under our Master Lease and
the impact of such obligations on our operations and liquidity; our
ability to identify and execute acquisition and development
opportunities; risks relating to construction, development and expansion
opportunities, including the ability of our joint venture to plan,
finance and receive required approvals to develop our Pompano real
estate on terms that we find acceptable, or at all; competition;
sensitivity of our operations to reductions in discretionary consumer
spending and changes in general economic and market conditions;
governmental regulations, including risk relating to obtaining and
maintaining required licenses, approvals and permits necessary for the
operation of online and mobile betting and gaming, and increases in
gaming taxes and fees in jurisdictions in which we operate; and other
risks and uncertainties described in our reports on Form 10-K, Form 10-Q
and Form 8-K.

In light of these and other risks, uncertainties and assumptions, the
forward-looking events discussed in this press release might not occur.These forward-looking statements speak only as of the date of this
press release, even if subsequently made available on our website or
otherwise, and we do not intend to update publicly any forward-looking
statement to reflect events or circumstances that occur after the date
on which the statement is made, except as may be required by law.

- tables follow -

ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2018

2017

2018

2017

REVENUES:

Casino

$

488,944

$

320,329

$

1,534,954

$

1,085,014

Pari-mutuel commissions

4,029

4,154

18,437

14,013

Food and beverage

82,688

56,580

247,332

198,246

Hotel

69,351

33,793

183,798

133,338

Other

26,748

15,045

71,486

50,187

Net revenues

671,760

429,901

2,056,007

1,480,798

EXPENSES:

Casino

226,043

158,427

732,580

547,438

Pari-mutuel commissions

3,688

3,758

16,709

13,651

Food and beverage

67,691

49,807

202,618

169,848

Hotel

24,830

13,712

65,009

50,575

Other

13,646

9,453

38,676

32,156

Marketing and promotions

39,906

25,076

106,161

83,174

General and administrative

126,053

72,702

349,598

241,037

Corporate

13,615

9,005

46,632

30,739

Impairment charges

—

38,016

13,602

38,016

Depreciation and amortization

58,224

36,255

157,429

105,891

Total operating expenses

573,696

416,211

1,729,014

1,312,525

Loss on sale or disposal of property and equipment

(441

)

(267)

(835

)

(319

)

Proceeds from terminated sales

—

20,000

5,000

20,000

Transaction expenses

(10,800

)

(3,605

)

(20,842

)

(92,777

)

Loss from unconsolidated affiliates

(97

)

(62

)

(213

)

(367

)

Operating income

86,726

29,756

310,103

94,810

OTHER EXPENSE:

Interest expense, net

(75,154

)

(30,389

)

(171,732

)

(99,769

)

Loss on early retirement of debt, net

—

(1,083

)

(162

)

(38,430

)

Unrealized loss on restricted investment

(2,587)

—

(2,587)

—

Total other expense

(77,741

)

(31,472

)

(174,481

)

(138,199

)

Net income (loss) before income taxes

8,985

(1,716)

135,622

(43,389

)

(Provision) benefit for income taxes

(9,105

)

90,654

(40,387

)

116,769

Net (loss) income

$

(120)

$

88,938

$

95,235

$

73,380

Net (loss) income per share of common stock:

Basic

$

0.00

$

1.16

$

1.23

$

1.09

Diluted

$

0.00

$

1.14

$

1.22

$

1.08

Weighted average basic shares outstanding

77,503,732

76,961,015

77,458,902

67,133,531

Weighted average diluted shares outstanding

77,503,732

77,998,742

78,282,101

68,102,814

1.

The prior period presentation has been adjusted for the adoption of
Accounting Standards Codification (ASC) No. 606 “Revenue from
Contracts with Customers” effective January 1, 2018 utilizing the
full retrospective transition method.

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

Three Months Ended December 31, 2018

OperatingIncome

Depreciation andAmortization

Stock-basedCompensation

TransactionExpenses (5)

Other (6)

AdjustedEBITDA

West

$

20,650

$

13,084

$

-

$

-

$

838

$

34,572

Midwest

25,084

8,430

15

-

(4

)

33,525

South

14,752

11,014

9

-

123

25,898

East

30,799

12,660

2

-

217

43,678

Central

21,372

11,368

-

-

909

33,649

Corporate

(25,931

)

1,668

3,412

10,800

8

(10,043

)

Total

$

86,726

$

58,224

$

3,438

$

10,800

$

2,091

$

161,279

Three Months Ended December 31, 2017

OperatingIncome

Depreciation andAmortization

Stock-basedCompensation

TransactionExpenses (5)

Other (7)

AdjustedEBITDA

Excluding Pre-Acquisition:

West

$

15,518

$

8,082

$

63

$

-

$

93

$

23,756

Midwest

22,396

8,036

57

-

60

30,549

South

(28,530

)

12,659

37

-

39,159

23,325

East

13,689

6,632

5

-

78

20,404

Central

-

-

-

-

-

-

Corporate

6,683

846

1,706

3,605

(20,000

)

(7,160

)

Total Excluding Pre-Acquisition

$

29,756

$

36,255

$

1,868

$

3,605

$

19,390

$

90,874

Pre-Acquisition (3):

West

$

2,020

$

3,091

$

-

$

-

$

6

$

5,117

Midwest

-

-

-

-

-

-

South

609

2,179

-

-

22

2,810

East

(1,725

)

7,299

-

-

3,842

9,416

Central

22,926

7,971

-

-

(2,080

)

28,817

Corporate

(5,503

)

625

-

-

-

(4,878

)

Total Pre- Acquisition

$

18,327

$

21,165

$

-

$

-

$

1,790

$

41,282

Including Pre-Acquisition:

West

$

17,538

$

11,173

$

63

$

-

$

99

$

28,873

Midwest

22,396

8,036

57

-

60

30,549

South

(27,921

)

14,838

37

-

39,181

26,135

East

11,964

13,931

5

-

3,920

29,820

Central

22,926

7,971

-

-

(2,080

)

28,817

Corporate

1,180

1,471

1,706

3,605

(20,000

)

(12,038

)

Total Including Pre-Acquisition (4)

$

48,083

$

57,420

$

1,868

$

3,605

$

21,180

$

132,156

Twelve Months Ended December 31, 2018

OperatingIncome

Depreciation andAmortization

Stock-basedCompensation

TransactionExpenses (5)

Other (6)

AdjustedEBITDA

Excluding Pre-Acquisition:

West

$

84,548

$

40,131

$

(32

)

$

-

$

1,542

$

126,189

Midwest

105,809

33,083

106

-

244

139,242

South

64,851

37,357

59

-

10,265

112,532

East

97,963

27,913

14

-

5,447

131,337

Central

24,240

13,583

-

-

1,676

39,499

Corporate

(67,308

)

5,362

12,937

20,842

(3,702

)

(31,869

)

Total Excluding Pre-Acquisition

$

310,103

$

157,429

$

13,084

$

20,842

$

15,472

$

516,930

Pre-Acquisition (1):

West

$

13,635

$

9,271

$

-

$

-

$

8

$

22,914

Midwest

-

-

-

-

-

-

South

355

6,076

-

-

20

6,451

East

46,261

24,444

-

-

159

70,864

Central

70,105

22,939

-

-

647

93,691

Corporate

(52,127

)

1,537

-

4,259

31,101

(15,230

)

Total Pre- Acquisition

$

78,229

$

64,267

$

-

$

4,259

$

31,935

$

178,690

Including Pre-Acquisition:

West

$

98,183

$

49,402

$

(32

)

$

-

$

1,550

$

149,103

Midwest

105,809

33,083

106

-

244

139,242

South

65,206

43,433

59

-

10,285

118,983

East

144,224

52,357

14

-

5,606

202,201

Central

94,345

36,522

-

-

2,323

133,190

Corporate

(119,435

)

6,899

12,937

25,101

27,399

(47,099

)

Total Including Pre-Acquisition (2)

$

388,332

$

221,696

$

13,084

$

25,101

$

47,407

$

695,620

Twelve Months Ended December 31, 2017

OperatingIncome

Depreciation andAmortization

Stock-basedCompensation

TransactionExpenses (5)

Other (7)

AdjustedEBITDA

Excluding Pre-Acquisition:

West

$

66,108

$

26,950

$

182

$

-

$

364

$

93,604

Midwest

62,071

20,997

210

-

193

83,471

South

3,680

25,307

147

-

41,144

70,278

East

68,101

30,517

14

-

369

99,001

Central

-

-

-

-

-

-

Corporate

(105,150

)

2,120

5,769

92,777

(19,689

)

(24,173

)

Total Excluding Pre-Acquisition

$

94,810

$

105,891

$

6,322

$

92,777

$

22,381

$

322,181

Pre-Acquisition (3):

West

$

22,983

$

16,261

$

8

$

-

$

8

$

39,260

Midwest

34,819

11,952

51

-

34

46,856

South

32,809

14,343

35

-

148

47,335

East

79,135

28,818

-

-

(19,396

)

88,557

Central

85,717

30,299

-

-

(3,228

)

112,788

Corporate

(28,503

)

2,576

1,631

286

557

(23,453

)

Total Pre- Acquisition

$

226,960

$

104,249

$

1,725

$

286

$

(21,877

)

$

311,343

Including Pre-Acquisition:

West

$

89,091

$

43,211

$

190

$

-

$

372

$

132,864

Midwest

96,890

32,949

261

-

227

130,327

South

36,489

39,650

182

-

41,292

117,613

East

147,236

59,335

14

-

(19,027

)

187,558

Central

85,717

30,299

-

-

(3,228

)

112,788

Corporate

(133,653

)

4,696

7,400

93,063

(19,132

)

(47,626

)

Total Including Pre-Acquisition (4)

$

321,770

$

210,140

$

8,047

$

93,063

$

504

$

633,524

(1)

Figures are for Tropicana for the nine months ended September 30,
2018 and for Elgin for the period beginning January 1, 2018 and
ending August 6, 2018. Such figures are based on internal financial
statements and have not been reviewed by the Company’s auditors.

(2)

Total figures for the year ended December 31, 2018 include combined
results of operations for TEI, GV and the Company for periods
preceding the date that the Company acquired Tropicana and Elgin.
Such presentation is unaudited and does not conform with GAAP or the
Securities and Exchange Commission rules for pro forma presentation;
however, we believe that the additional financial information will
be helpful to investors in comparing current results with results of
prior periods. This is non-GAAP data and should not be considered a
substitute for data prepared in accordance with GAAP, but should be
viewed in addition to the results of operations reported by the
Company.

(3)

For the twelve months ended December 31, 2017, figures are for TEI
and GV for the year ended December 31, 2017 and for Isle for the
four months ended April 30, 2017. For the three months ended
December 31, 2017, figures are for TEI and GV for the three months
ended December 31, 2017. The Isle figures were prepared by the
Company to reflect Isle’s unaudited consolidated historical
operating revenues, operating income and Adjusted EBITDA for periods
corresponding to the Company’s fiscal calendar. Such figures are
based on the unaudited internal financial statements and have not
been reviewed by the Company’s auditors and do not conform to GAAP.

(4)

Total figures for the year ended December 31, 2017 include combined
results of operations for TEI, GV, Isle and the Company for periods
preceding the dates that the Company acquired TEI, GV and Isle.
Total figures for three months ended December 31, 2017 include
combined results of operations for TEI, GV and the Company for
periods preceding the dates that the Company acquired TEI and GV.
Such presentation does not conform with GAAP or the Securities and
Exchange Commission rules for pro forma presentation; however, we
believe that the additional financial information will be helpful to
investors in comparing current results with results of prior
periods. This is non-GAAP data and should not be considered a
substitute for data prepared in accordance with GAAP, but should be
viewed in addition to the results of operations reported by the
Company.

(5)

Transaction expenses represent costs related to the acquisition of
Isle for the year ended December 31, 2017 and costs related to the
acquisition of TEI, GV and Isle for the year ended December 31, 2018.

(6)

Other, for the year ended December 31, 2018, is comprised of
severance expense, gain (loss) on the sale or disposal of property
and equipment, equity in income (loss) of an unconsolidated
affiliate, preopening expenses at Tropicana Casino and Resort,
Atlantic City (“Trop AC”), impairment charges at Vicksburg and
Nemacolin, proceeds from the terminated sale of Vicksburg, other
non-cash regulatory gaming assessments and selling costs associated
with the dispositions of Presque Isle Downs, Nemacolin, the
terminated sale of Vicksburg and the purchase of TEI and GV.

(7)

Other, for the year ended December 31, 2017, is comprised of
severance expense, gain (loss) on the sale or disposal of property
and equipment, equity in income (loss) of an unconsolidated
affiliate, preopening expenses at Evansville, business interruption
insurance proceeds received at Lumière, proceeds from a real estate
tax settlement at Trop AC, impairment charges recorded at Lake
Charles, Lula and Vicksburg, proceeds from the terminated sale of
Vicksburg, non-cash regulatory gaming assessments, selling costs
associated with the terminated sale of Lake Charles, proceeds from
the terminated sale of Lake Charles and a permanent impairment of
investments held by Trop AC.

In conjunction with the Tropicana Acquisition, we began reporting
Adjusted EBITDA after Master Lease Payments. Master Lease Payments
represents cash rent payments to GLPI associated with the triple net
operating lease entered into on October 1, 2018. Total interest
expense related to the Master Lease was $24.4 million for the period
from October 1, 2018 to December 31, 2018. For the initial periods
of the Master Lease, cash payments are less than the interest
expense recognized due to the accounting treatment of the failed
sale-leaseback obligation. The pro forma adjusted revenue to rent
ratio (as defined in the Master Lease Agreement) for the properties
in the aggregate totaled 2.0:1.0 for the twelve months ended
December 31, 2018.